Assura has engaged in further discussions with Primary Health Properties (PHP) on its £1.68bn combination offer.

The FTSE 250 healthcare REIT said that that following a firm intention from PHP on 16 May to make a share and cash offer, it has carefully considered the deal with its advisers and consulted its major shareholders.

As a result, Assura has now commenced due diligence in relation to the deal. If it goes ahead, Assura shareholders will hold approximately 48% of the new combined company.

The update comes after the US global investment firm, KKR, said its £1.6bn acquisition offer for Assura, which was accepted by the healthcare REIT in April, is "superior" to PHP’s offer.

KKR noted "numerous critical issues" in PHP’s offer, including the need for potential disposals to manage high debt levels and scrutiny from the Competition and Markets Authority on the merger between the two largest providers in the UK healthcare property sector.

Despite this, the Assura board has adjourned its respective court meeting and general meeting required to implement the cash offer from KKR, which was due to take place on 5 June.

In a statement, Assura said: "It is therefore recommended that Assura shareholders do not attend the meetings scheduled for 5 June 2025 and take no further action at this stage in relation to the cash offer and the PHP offer.

"A further announcement will be made in due course once the meetings have been formally adjourned."

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